Post on 21-Nov-2018
transcript
Financial Strategy
Review and Outlook
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.2
Ensure long-term stable funding and maintain access to financial capital markets
Maintain liquidity and mitigate refinancing risk
Fully utilize loans from government financial agencies, project finance
Exercise efficient cash management and transaction control (global cash management, in-house banking)
Support Mitsui’s growth strategy by ensuring liquidity
and maintaining financial soundness
Basic Policy
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.3
Introduced cash flow allocation framework from previous medium-term management plan
Mar/2017: Executed hybrid loans (total ¥555bn, recognized equity content 50%)
Mar/2017 onwards: Made steady progress in strengthening financial base amid strong earnings
Mar/2018 year end: Reduced Net DER to 0.78x (lowest ever); Equivalent to 0.66x after adjustment for hybrid loans
Improved major ratings outlook from Negative to Stable
Current outlook for shareholder returns in medium-term plan is ¥400bn+, compared with total shareholder returns during period of previous plan of ¥400bn
Cash flow focused management; Strengthen financial base
Progress in Financial Strategy
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.4
Core Operating Cash Flow
0
20
40
60
80
100
120
140
160
180
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3e 20/3e
Iron Ore Crude Oil (JCC)(100 million yen) (USD)
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.5
Debt Maturity as of 2018/03
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Due within 2 years:
11,400
Hybrid(1st Call) Short-Term Debt Long-Term Debt
(100 million yen)
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.6
Net Debt to Equity Ratio*
*Adjusted Net DER by including 50% of subordinated syndicated loan (JPY 555bil) in capital
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0
10,000
20,000
30,000
40,000
50,000
60,000
13/3 14/3 15/3 16/3 17/3 18/3 19/3e 20/3e
Shareholder's Equity Net Debt Net DER
(100 million yen) (times)
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.7
Non-Current Asset / Shareholder’s Equity (Multiple)
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
13/3 14/3 15/3 16/3 17/3 18/3 19/3e 20/3e
Non-Current Asset Shareholder's Equity Multiple
(100 million yen) (times)
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.8
Risk Asset / Shareholder’s Equity*
30
35
40
45
50
55
60
65
70
75
80
0
10,000
20,000
30,000
40,000
50,000
13/3 14/3 15/3 16/3 17/3 18/3 19/3e 20/3e
Risk Asset Shareholder's Equity Risk Asset/Equity
*Adjusted Shareholder’s Equity by including 50% of subordinated syndicated loan (JPY 555bil) in capital
(100 million yen) (%)
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.9
Mineral &
Metal Resources
Energy
Machinery &
Infrastructure
Chemicals
C o r e A r e a s
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Shinichiro OmachiMineral & Metal Resources Business Unit
M i n e r a l &
M e t a l R e s o u r c e s
11Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Secure competitive resources and
contribute to stable supply
Establish trading and investment
businesses to fulfill customer &
partner needs
Pursue balanced business which contributes to
sustainable economic growth, while preserving the environment
Value
chain
Raw Material
Supply
Refinery &
Processing
Sales and
Marketing
Recovery &
Recycling
Basic Strategies
12Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
168.3
240.8
175.0 200.0
89.3
257.6
Seize the upside
potential on a
market upturn
Valeparvaluation
gain
■ Profit (PAT)
■ Core Operating
Cash Flow
Mar/2019 Mar/2020Mar/2018(Actual)
Unit:¥bn
Quantitative Targets Profit(PAT)/Core Operating Cash Flow
Medium-term
Management Plan12
13Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Mitsui
Mt. Newman / Yandi /Goldsworthy / Jimblebar (Australia)
Robe River (Australia)
South Walker Creek /Poitrel (Australia)
Moranbah North /Capcoal / Dawson (Australia)
Kestrel (Australia)
Collahuasi (Chile)
Anglo American Sur (AAS) (Chile)
Caserones (Chile)
Iron ore
Coal
Copper
BHP
Rio Tinto
Anglo American
Glencore
Codelco
Pan Pacific Copper
Vale
Moatize / Nacala (Mozambique)
Major Projects
14Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Iron Ore
Copper
©Anglo American
Coal
Progress on Key Initiatives
Further enhance competitiveness◆Increased equity share of production
◆Increased quality assets through Valepar reorganization
◆Automating Western Australian iron ore operations
Extract returns from new projects, enhance portfolio◆Ramping-up Moatize coal mine / Nacala infrastructure operation
◆Considering optimization of Australian asset portfolio
Strengthen existing operations and quality assets◆Increased stake in Collahuasi
◆Making operational improvements at AAS and Caserones
15Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Iron Ore
Long-term production backed by abundant reserves
Production Volume
(Blue areas: Projects Mitsui participates)
Increase/Start up production
Robust production base ・Vale Carajas S11D production increase
・BHP South Flank development
(Post-Yandi deposit; FID scheduled in mid-2018)
Cost
Cost Curve (image)
Mar/2016
Actual
(Mt/year) Equity Share of Production
World-class cost competitiveness
Further enhancing cost competitiveness・BHP Jimblebar production increase
・Vale Carajas S11D ramp-up
Mar/2018
Actual
Mar/2017
Actual
Mar/2019
Plan
Mar/2020
Plan
Competitive Advantages - 1
Cost Competitiveness Equity Share of Production
Three pillars of profit base: iron ore, coal, and copper
* Includes Vale production share (5.0% for FY Mar/2018 Q1 and earlier, 5.5% for Q2 and after), others
*
16Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Coal
Copper
Long-term production backed by abundant reserves
(Mt/year)
Upper: Thermal coal
Lower: Coking coalCoalCoking
coal
Portfolio focused on coking coal
Start up of Moatize coal mine AAS・Caserones operational improvement
Increased share in Collahuasi
Further strengthen cost competitiveness
(Green/red areas: Projects Mitsui participates)
Cost Curves (image)
Production Volume
Cost
(Kt/year)
CopperCopper Operational improvement
Increased
production
Mar/2016
Actual
Mar/2018
Actual
Mar/2017
Actual
Mar/2019
Plan
Mar/2020
Plan
Production Volume
Cost
Mar/2016
Actual
Mar/2018
Actual
Mar/2017
Actual
Mar/2019
Plan
Mar/2020
Plan
Cost Competitiveness Equity Share of Production
Competitive Advantages - 1 Three pillars of profit base: iron ore, coal, and copper
* Includes Vale production share (5.0% for FY Mar/2018 Q1 and earlier, 5.5% for Q2 and after), others
*
17Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Iron ore
General
Cargo
Coal
Aluminium
Phosphate
Rock
2003Partnered with
Vale
New
Businesses
2017 Participated in coal mine & infrastructure business/Mozambique © Dario Zalis / Vale
2005 Increased stakes in Albras・Alunorte/Brazil
2014 Participated in VLI business/Brazil
2010 Participated in Miski Mayobusiness / Peru
*Participated from 1970’s
Vale
Competitive Advantages - 2
1971Entered Brazil
iron orebusiness
Using Mitsui’s long experience and capabilities in mineral and metal resources— trust, network, distribution—to originate investment opportunities
*
18Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
2004Ferroalloys JV with
Erdos and JFE
2007Participated in Erdos Electric
Power & Metallurgical Company
1996PCR (US)
2007SIMS
2014GHM*
Recycling
activities in China2012AAS
1996Collahuasi
2010Caserones
1970~Cashmere trading
Chemical
products
and other
downstream
businesses
Copper concentrate
blending business
andsupply of
mining equipment
Scrap of
ferrous,
aluminium,
copper and
PCB**
Erdos
RecyclingCopper
business
*Chinese recycling business
**Printed Circuit Boards
Competitive Advantages - 2 Using Mitsui’s long experience and capabilities in mineral and metal resources— trust, network, distribution—to originate investment opportunities
19Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Changes in the business environment over 1 year: Mitsui’s approach
China’s
rapidly changing
environmental policy
Growing need for high grade
resources; Increased use of scrap
Some major mining companies
divesting coal assets
Increased importance of
securing secondary
battery resources
Accelerated shift toward
low carbon emissions
Global acceleration of
shift to EV
Portfolio management toward more competitive assets
Responding to energy mix in individual countries & regions
Recycling
Discussing with auto &battery makers to establish value chain of secondary
battery materials
Mitsui’s approach
20Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Secure competitive resources and
contribute to stable supply
Establish trading and investment
businesses to fulfill customer &
partner needs
Pursue balanced business which contributes to
sustainable economic growth, while preserving the environment
Value
chain
Raw Material
Supply
Refinery &
Processing
Sales and
Marketing
Recovery &
Recycling
Basic Strategies
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Hirotatsu FujiwaraEnergy Business Unit II
Energy
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.22
Build a competitive asset portfolio
Develop a mid/downstream energy value chain
Basic Strategies
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.23
■ Profit (PAT)
■ Core OperatingCash Flow
48.6
175.3
65.0
180.0
Quantitative targets Profit(PAT)/Core Operating Cash Flow
Unit:¥bn
Medium-term
Management Plan
Mar/2019 Mar/2020Mar/2018(Actual)
23
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.24
0
50
100
150
200
250
300
Mar/2017 Mar/2018 Mar/2019 Mar/2020
0
5
10
15
20
25
30
Production volume;
Reserves
(Unit: Million tons)Production
(1,000 Boe./ day)
Reserves(100m barrels)
*Reserves are for post-FID projects only
LNG production
capacity
0
2
4
6
8
10
Mar/2017 Mar/2018 Mar/2019 Mar/2020 Mar/2025
Cameron
Mozambique
Sakhalin II
expansion
Competitive advantages Equity share of crude oil & gas production and reserves;
LNG production capacity
Left axis:Production ■Oil ■Gas
Right axis:Reserves ■Oil ■Gas
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.25
Energy demand will increase along with economic and population growth
Main source of primary energy for some time
Fossil fuels
Growing needs of society
Lower cost resulting in market penetration
There are scenarios that anticipate
crude oil demand to reach a plateau
between 2030-2040
Strong growth of demand over a
protracted period
Crude Oil Gas
Manage asset portfolio with emphasis on long-term view
Further expansion of gas business
Initiatives related to new and
renewable energy
Non-fossil fuels/Renewable energy
Business Environment
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.26
Acquisition of AWE Limited, an Australian oil and gas company
・ Expansion of asset portfolio2P reserves 82m BOE (December 2017), Production 2.5m BOE (forecast for 2018)
・ Acquired operatorship capabilities
2015Participate in
Kipper
2004Participate in
Enfield/Vincent
Waitsia
FID
Develop
Waitsia
Maximize value
of Waitsia,
develop adjacent areas
Expand operations
in Australia and New Zealand
Synergies and positive impact
on the entire E&P business
Waitsia gas field• Currently planning for 2018 FID and 2020 start-up
• Cost competitive onshore gas field due to its
proximity to demand and existing infrastructure
• Upside potentials for production and reserves
1
Perth
Waitsia
1995Participate
in Wandoo Step
Change
E&P
Business
Build a competitive upstream asset portfolio
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.27
Top-class Resources
Approximately 75tcf
– this amounts to over 15
years' worth of natural
gas consumption in Japan
Restrained entry cost
Participation from the
exploration stage (approx. 10 years ago)
• Plan to start production at a capacity of 12million tons/year from the early 2020s, potential for further expansion.
• Expect to be a major LNG supply base, contributing to profit in the long-term.
Mozambique Area1
LNG
Business
MOZAMBIQUE
MOZAMBIQUE
Golfinho/Atum
Prosperidade
Orca
Tubarão
Tubarão Tigre
LNG Facility Site
10 MLES
16 KM
Area 1 Block
Natural Gas Field
Area 1 ConsortiumOFF SHORE AREA 1
1 Build a competitive upstream asset portfolio
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.28
2
• Increase in Mitsui’s handling volume of LNG by 4million tons/year**Approximately the annual gas consumption of 12million Japanese households
• Allocate 7 newly built LNG carriers to expand global trading
Cameron LNG
Energy
Value Chain
Develop a mid/downstream energy value chain
Cameron LNG
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.29
Mozambique Area 1
Gas Oil
Tempa Rossa oil field
Kaikias oil field
Cameron LNG
Sakhalin II LNG
Train 3
Greater Enfield
oil field
Browse gas field
Waitsia gas field
Projects in the Pipeline
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.30
Shingo Sato
M a c h i n e r y & &
I n f r a s t r u c t u r e
Integrated Transportation Systems Business Unit Ⅰ
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.31
89.685.0
90.0105.0
85.0
158.8
■ Profit (PAT)
■ Core Operating
Cash Flow
Mar/2019 Mar/2020Mar/2018(Actual)
Unit:¥bn
Quantitative Targets Profit(PAT)/Core Operating Cash Flow
Medium-term
Management Plan31
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.32
■Automobiles ■Construction equipment ■Shipping ■Aerospace■Transportation
Competitive Advantages
Coordination with 160 affiliate companies
Developing comprehensive business through extensive customer base
and coordination with top-level partners
Development & Expansion
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.33
Offshore
oil&gas
Gas
distribution
Power
© MODEC
Competitive Advantages
Existing infrastructure assets backed by stable demand
Increase in value through productivity streamlining, and portfolio optimization through asset recycling
Power generation capacity 9.3GW
Well-balanced region/fuel portfolio
Operatorship
Solid cooperative structure with MODEC
Proven results with abundance of projects for Brazilian firm Petrobras
Stable income from 18 FPSO/FSO vessels (investment scale: ¥80 bn)
Strong relationship with Petrobras
Approximately 50% share of Brazil gas supply
(Operating in 19 of 26 states)
Americas
32%
Asia,
Australia
34%
By
region
Middle East
26%
Africa
7%
Coal
22%
Renewable energy
16%
By
fuel
Gas
62%
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.34
Business Environment
Climate change
bringing heightened
awareness of the
environment
Technological
innovation and
digital revolution
Mobility market
expansion and
business model
change
Accelerated change
in industrial structure
Low-carbon society
Strengthening of
environmental regulations
New business opportunities
Shift from owning to using
(lease, rental, sharing)
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.35
Thoroughly reinforce
a sustainable earnings base
Implement strategic lifecycle management
Enter new business domains(e.g. automotive sector)
Basic Strategies
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.36
Increased
stake in
Penske Truck
Leasing
FPSO
Charter-in
Cameron
LNG vessel
©MODEC
Thoroughly reinforce a sustainable earnings base (progress)1
・Equity holding 20%30%
¥48.0 bn
・Strengthened ties with
Penske Group (70%)
・Launched operation of 2
FPSO vessels(for Brazil, Ghana)
・Invested in 2 new vessels
・Investment in 2 of 7
long-term charter ships・Assessing remaining 5
ships
・First FSRU to Pakistan
・Capturing LNG demand
in developing nations
FSRU
investment
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.37
Sky Futures(UK)
Komatsu,
LANDLOG
1
Digital Transformation
・Drone inspections to increase safety and decrease downtime
・Improve inspection efficiency of large assets such as ships
・Optimize asset management through accumulated data and AI
“Digital Transformation with KOMATSU/LANDLOG”Use construction equipment data and digitalize construction sites
Start fuel supply services as entry point for joint development of new
services
→Reform construction industry and lift efficiency
Thoroughly reinforce a sustainable earnings base
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.38
Power
2
Power business: Develop & Sell
Energy management
services
Distributed PowerIPPLarge power plants
Asset recycling
Strategic lifecycle management(2018 progress)
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.39
Automotive
sector
3
EVEngineering
outsourcing
Services/Lease, rental and sharing
成長
OEM business manufacturing & sales(continue to strengthen as core earnings source)
BatteriesUpstream
Downstream
• Fleet Management
• Mobility as a Service (MaaS)
Challenge new business domains(Example: automotive sector)
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.40
PTL
(US)
Mitta
(Chile)
Penske Truck Leasing Co., L.P(”PTL”) Together with Penske Automotive Group as
international transportation services company
Secure new mobility business platforms in US and other regions
Grow and horizontally extend full-service truck leasing, truck
rental and logistics business
Largest auto lease/rental co. in ChileInversiones Mitta SpA(49% stake) Leveraging vehicle operating lease (B to B)and rental car businesses (B to C) ,
expandthe value chain to consumer side
Individual strategy① Lease, Rental, Sharing
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.41
Participate
in EV-relatedbusiness
Individual strategy② Expand EV and batteries platforms
Investing in EV development and manufacturing
business to secure development and production capabilities in EVs and core components
Caetano Bus(EV bus)・Global No.1 in airport passenger buses
・Aiming to expand EV bus business thru Mitsui network
Forsee (Battery system)・Battery system technologies incl. battery and related systems
・Pursue battery lifecycle business incl. leasing, re-use and recycling
Lucid Motors(Premium EV)・Core EV technologies like batteries, motor and software
・Targeting 2020 commercial production
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.42
Toyota Motor Manufacturing Turkey
CLAAS Russia
India Yamaha Motor Private
Bussan Auto Finance India
Transystem Logistics International
Yamaha Indonesia Motor Manufacturing
Mitsui Bussan Automotive (Thailand)
Hino Motors Sales (Thailand)
Hino Motors Manufacturing (Thailand)
BAF (Thailand)
Sollers-Bussan
Kuotu Motors
Toyota Motor Philippines
Automotor Toyota Colombia
Hino Motors Manufacturing Colombia
Toyota del Peru
Mitsui Automotriz
Mitsui Auto Finance Peru
Toyota Chile
Mitsui Auto Finance
Chile
T
T
T
T
T
T
T
T
T
T
T
Daihatsu Malaysia / Perodua Auto CorporationD
H
H
H
Hino Motors Manufacturing MexicoH
Hino Motors Sales MexicoH
H
Y
Bussan Auto FinanceY
Y
Y
Y
O
O
O Veloce Logistica
Toyota Manila Bay CorporationLEXUS Manila
O KAAP(China)
Penske Automotive GroupO
Kobe Aluminum Automotive ProductO
Hino Motors Sales USAH
Toyota Canada
Hino Motors Sales
(Russia)H
T
Android IndustriesO
T
O Penske Truck Leasing
O MAF Colombia
T Lao Toyota Service (Laos)
Car ClubO
SGM AutomotrizS
OSmart Auto Systems Private
O Autorentas (Inversions Mitta)
O Mitsui Bussan Automotive
Car Price AzapaO O O TTS
O Forsee Power
O Caetano Bus
Russia
India
Emerging
Philippines
Indonesia
Asia-Pacific
Thailand
Malaysia
US
Canada
Americas
Mexico
Colombia
Peru
Chile
● Logistics
▲ Assembly, mftg
■ Distributor
TOYOTATDAIHATSUDHINOH
YAMAHAY
Others, VariousO
SubaruS
◆ Dealer
○ Finance, lease, rental
■ Auto parts
Japan
Australia
As of March 2018
Auto industry regional strategy
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.
Sayu UenoBasic Materials Business Unit
C h e m i c a l s
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.44
50.0
80.0 ■ Profit (PAT)
■ Core Operating
Cash Flow
34.250.2 40.0
55.0
Mar/2019 Mar/2020Mar/2018(Actual)
Unit:¥bn
Quantitative Targets Profit(PAT)/Core Operating Cash Flow
Medium-term
Management Plan44
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.45
New business opportunities
where industries intersect
Increase in demand for
industrial solutions based on
chemicals and materials
Business Environment
Population growthin developing countries QoL improvements
Low-carbon and recycling shifts Digitalization
Mobility
Food &
Agriculture Healthcare
ICT /
New
industries
Nutrition
Increasingly
complex industry
structure
Personal
Care
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.46
Connect the chemical industry with related industries and create new businessthrough the power of chemistry
Performance Materials BU Nutrition & Agriculture BU
Consolidated global workforce
Approx. 5,000Overseas locations
79 countriesBroad range of product areas
and customer base
Mobility
Coating materials
Healthcare
Nutrition
Food & Agriculture
Consumer
products
Electronics
Basic Materials BU
Dental x Digital
Methanol
AmmoniaTank
terminal
Basic
Petrochemicals
Global Network
Specialty
chemicals
Animal
nutrition
Performance
materials
Human
nutrition
Advanced
materials
Agricultural
input
Competitive Advantages
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.47
Magnet effectsthrough loop of
trading and projects(deal flow creation)
Projects
Trading
Strengthen
global sales capabilities
Deepen relationships
with partners and
become an industry insider
Provide additional value
to customers and
our own projects
Stay alert to industry changes
and technological innovation
Drive forward business initiatives, high investment efficiency
Competitive Advantages
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.48
Execute bolt-on investments
Reinforce trading capabilities
Engage in new growth opportunities
Basic Strategies
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.49
Strengthen methionine business
at NOVUS
Develop and expand specialty
feed additive business
Novus Other producers
• Stable demand growth(6%/yr.)
• Top market share in the U.S. and
competitive edge (plant location and
product form)
• Plan to increase production capacity
Animal
Nutrition
Execute bolt-on investments
【Methionine production locations】
1
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.50
Geographic advantage & advanced
safety management framework
Doubled tank capacity
in past 10years
Continuing further expansions
Tank
Terminal
1,000
2,000
3,000
Mar/2008 Mar/2019
2.8mil m3
1.4
Increased export of petroleum and petrochemical
products due to the competitiveness of U.S. shale
Execute bolt-on investments1
1.0
2.0
3.0
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.51
Steady demand growth(5-6%/yr.)
Continuously pursue further
capacity expansions
Methanol
Top class cost
competitiveness
【Methanol production cost curve 】
Approx. 78 mil MTTotal prod. in 2017
Pro
du
ctio
n c
ash
co
st
0 8040
ME
Africa
N.America
S.America
Europe
etc.NE Asia
SE.
Asia
Execute bolt-on investments1
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.52
Reinforce trading capabilities
Global
Trading
Platform
2
・Deep relationships in local markets
・High expertise and autonomy of regional employees
Trading-related
gross profit
Mar/2020
10087
Mar/2018(Actual)
Unit:¥bn
Function
Region
Product
・Mitsui & Co.
Petrochemicals,
Electronics materials,
Sulphur and Sulphuric Acid
etc.
Global trading× Local distribution
Operational flexibility based on leading market share and
volume
Asset-based trading
“Tailor made”
solution model
【 】
・Mitsui Bussan Chemicals
・Mitsui & Co. Plastics
・MASI
・Distribution companies
of Agricultural inputs(fertilizers, agrochemicals, seeds)
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.53
Methanol
AmmoniaTank
terminal
Basic
Petrochemicals
Specialty
chemicals
Animal
nutrition
Performance
materials
Human
nutrition
Advanced
materials
Agricultural
input
Engage in new growth opportunities3
Semiconductor sensorInvestment in Connectec Japan
(install sensor chips on various materials)
Multi materialsHigh performance materials &
compounding business
Initiatives for lighter cars(Engineering, High pressured
hydrogen tank etc.)
Human NutritionCompletion of TOB for Soda Aromatics
Collaboration among consolidated
companies
Medical NutritionInvestment in evidence-based
nutraceutical business
AgricultureInvestment in seed business ,
Expansion of agricultural
inputs distribution business
Performance
Materials
Mobility
IoT
Nutrition &
Agriculture
Coating materialsAgreement to invest in Europe business
Unique surfactantsF/S of manufacturing and sales of SOFTANOL®
products in Thailand
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.54
Coating
Materials
Industry characteristics
“Tailor made” R&D/proposals
Expertise-intensive industry (Technology & Service Network)
Mitsui Strengths
Global sales network Presence in various industries⇒expansion of sales portfolio &
demand creation
Helios Group
Comprehensive coating company in Europe
Kansai Paint Group Strong in industrial coatings
Pursue further investment opportunities
Strengthen business base
High entry barrier
High profitability
Engage in new growth opportunities3
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.55
Nutrition &
Agriculture
Challenge new areas between “foods” and
“pharmaceuticals”
Address demand for high-added value such as solutions for
presymptomatic disease, QoL improvements, enhanced taste
and flavor
Develop agrochemical and seed businesses through product
portfolio enhancement
Strengthen agricultural inputs distribution business through
geographical expansion and business model evolution
Engage in new growth opportunities3
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.56
50.0
80.0 ■ Profit (PAT)
■ Core Operating
Cash Flow
34.250.2 40.0
55.0
Mar/2019 Mar/2020Mar/2018(Actual)
Unit:¥bn
Medium-term
Management Plan
Quantitative Targets
56
Copyright © MITSUI & CO., LTD. ALL RIGHTS RESERVED.57
This material contains statements (including figures) regarding Mitsui & Co., Ltd. (“Mitsui”)’s
corporate strategies, objectives, and views of future developments that are forward-looking in
nature and are not simply reiterations of historical facts. These statements are presented to inform
stakeholders of the views of Mitsui’s management but should not be relied on solely in making
investment and other decisions. You should be aware that a number of important risk factors could
lead to outcomes that differ materially from those presented in such forward-looking statements.
These include, but are not limited to, (i) change in economic conditions that may lead to
unforeseen developments in markets for products handled by Mitsui, (ii) fluctuations in currency
exchange rates that may cause unexpected deterioration in the value of transactions, (iii) adverse
political developments that may create unavoidable delays or postponement of transactions and
projects, (iv) changes in laws, regulations, or policies in any of the countries where Mitsui conducts
its operations that may affect Mitsui's ability to fulfil its commitments, and (v) significant changes in
the competitive environment. In the course of its operations, Mitsui adopts measures to control
these and other types of risks, but this does not constitute a guarantee that such measures will be
effective.
A Cautionary Note on Forward-Looking Statements: